Variable overhead rate variances: It is the difference between standard variable overhead rate and actual variable overhead rate and than multiplying with actual hours. Variable overhead efficiency variances: It is the difference between standard and actual hours, than multiplying with standard rate. Actual variable overhead: It is calculated by multipling actual hourwith actual rate. Applied variable overhead: It is calculated by multipling standard hour with standard rate. To compute: The variable overhead rate and efficiency variances and its over or under applied variable overhead.

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Chapter 9, Problem 11E

To determine

Concept introduction:

Variable overhead rate variances:

It is the difference between standard variable overhead rate and actual variable overhead rate and than multiplying with actual hours.

Variable overhead efficiency variances:

It is the difference between standard and actual hours, than multiplying with standard rate.

Actual variable overhead:

It is calculated by multipling actual hourwith actual rate.

Applied variable overhead:

It is calculated by multipling standard hour with standard rate.

To compute:

The variable overhead rate and efficiency variances and its over or under applied variable overhead.

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